Anti-Corruption Compliance - Industry News

Union ready to enlist PQ help to stop inquiry

/The Canadian Press, Montreal, Jan. 21, 2014/ – A wiretap conversation heard at Quebec’s corruption inquiry suggests the province’s largest labour federation was ready to enlist the help of friends at the Parti Quebecois to make sure such a probe didn’t take place. The wiretap is of an exchange in 2009 between two senior union bosses who can be heard saying they were ready to seek the help of PQ Leader Pauline Marois to ensure the inquiry never happens. [Read More…]

What Canadian Companies Can Learn From Alcoa’s US$384 Million Anti-Corruption Fine

/Brandon Barnes, Graham Erion, Jeffrey Horswill, John Munnis and Johanna Goosen, Davis LLP, Jan. 20, 2014/ – The U.S. Department of Justice (“DOJ”) and the Securities and Exchange Commission (“SEC”) sent a stern warning to companies engaged in international trade last week with a settlement, disgorgement of profits and fines worth a combined US$384 million against Alcoa Inc. (“Alcoa”) for violations of the Foreign Corrupt Practices Act (“FCPA“). A subsidiary of Alcoa, Alcoa World Alumina LLC (“AWA”), also pled guilty to criminal charges and paid fines to the DOJ, while the parent company paid its fine to the SEC for bookkeeping offences. This was the fourth-largest FCPA settlement ever and provides a valuable lesson to Canadian companies subject to the FCPA and even those subject only to the Canadian equivalent, the Corruption of Foreign Public Officials Act (“CFPOA“), which was recently revised to strengthen provisions on internal controls and recordkeeping. [Read More…] Recommendations Issued for Canada’s Mandatory Payment Disclosure Regime /John W. Boscariol, McCarthy Tétrault LLP, Jan. 16, 2014/ – Today, a report entitled Recommendations on Mandatory Disclosure of Payments from Canadian Mining Companies to Governments¹ was issued by the Resource Revenue Transparency Working Group, a joint working group comprising non-governmental and mining industry organizations. This follows the announcement last year by the Canadian government of its intention to require companies in the extractive industries, including mining and oil and gas, to disclose their payments made to domestic and foreign governments. This Canadian transparency initiative, which follows similar measures being adopted by the United States and the European Union for their extractive industries, has important implications in light of increased legislative and enforcement action under Canada’s anti-corruption regime, including the Corruption of Foreign Public Officials Act (CFPOA) and the Criminal Code. [Read More…]

Mining Industry Endorses Rules Targeting Corruption Abroad

/Sunny Freeman, Huffington Post, Jan. 16, 2014/ – Canada’s mining industry has put its weight behind a push for companies to publicly disclose the government payments they make at home and abroad. The move is part of an effort to stop corruption and make the actions of Canadian companies in foreign countries more transparent. Two corporate watchdog groups worked with Canada’s two biggest mining associations to develop a set of recommendations that target the financial dealings between miners and governments. The report will be presented to Ottawa and the provinces, as well as provincial securities regulators, who will then decide whether to adopt the protocol. [Read More…]